By Cuellar H.B. No. 395
75R1309 MLR-F
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to the requirements for issuance in certain counties of a
1-3 license to execute bail bonds.
1-4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-5 SECTION 1. Section 3, Chapter 550, Acts of the 63rd
1-6 Legislature, Regular Session, 1973 (Article 2372p-3, Vernon's Texas
1-7 Civil Statutes), is amended by adding Subsection (f) to read as
1-8 follows:
1-9 (f) In a county bordering the United Mexican States that has
1-10 a population of not more than 250,000 and not less than 125,000, a
1-11 person may not be licensed as a bondsman or act as an agent of a
1-12 bondsman if the person is:
1-13 (1) an employee of:
1-14 (A) this state;
1-15 (B) the county in which the license is sought;
1-16 or
1-17 (C) a municipality in the county in which the
1-18 license is sought; or
1-19 (2) related in the first degree of consanguinity or
1-20 the second degree of affinity, as determined under Chapter 573,
1-21 Government Code, to a person who works, whether or not for
1-22 compensation, for:
1-23 (A) the sheriff of the county in which the
1-24 license is sought;
2-1 (B) a constable, certified police officer, or
2-2 justice of the peace in the county in which the license is sought;
2-3 or
2-4 (C) a police department that has jurisdiction in
2-5 the county in which the license is sought.
2-6 SECTION 2. Section 6(f), Chapter 550, Acts of the 63rd
2-7 Legislature, Regular Session, 1973 (Article 2372p-3, Vernon's Texas
2-8 Civil Statutes), is amended to read as follows:
2-9 (f) Upon notice from the board that the application has been
2-10 tentatively approved, the applicant shall then:
2-11 (1) deposit with the county treasurer of the county in
2-12 which the license is to be issued a cashier's check, certificate of
2-13 deposit, cash, or cash equivalent in the amount indicated by the
2-14 applicant under Subdivision (5) of Subsection (a) of Section 6 of
2-15 this Act but in no event less than $50,000 except:
2-16 (A) in counties with populations of less than
2-17 250,000 [persons by the most recent federal census], other than a
2-18 county described in Paragraph (B) of this subdivision, the amount
2-19 for applicants in said counties shall be $10,000 to be held in a
2-20 special fund to be called the bail security fund; or
2-21 (B) in a county bordering the United Mexican
2-22 States that has a population of not more than 250,000 and not less
2-23 than 125,000, the amount shall be $25,000 to be held in a special
2-24 fund to be called the bail security fund; or
2-25 (2) execute in trust to the board deeds to the
2-26 property listed by the applicant under Subdivision (4) of
2-27 Subsection (a) of Section 6 of this Act, which property shall be
3-1 valued in the amount indicated on an appraisal by a real estate
3-2 appraiser who is a member in good standing of a nationally
3-3 recognized professional appraiser society or trade organization
3-4 that has an established code of ethics, educational program, and
3-5 professional certification program, but in no event less than
3-6 $50,000 valuation, except:
3-7 (A) in counties with populations of less than
3-8 250,000 [persons by the most recent federal census], other than a
3-9 county described in Paragraph (B) of this subdivision, the amount
3-10 for applicants in said counties shall be $10,000; or
3-11 (B) in a county bordering the United Mexican
3-12 States that has a population of not more than 250,000 and not less
3-13 than 125,000, the amount shall be $25,000.
3-14 (3) The[, the] condition of a [the] trust created
3-15 under Subdivision (2) of this subsection is [being] that the
3-16 property may be sold to satisfy any final judgment forfeitures that
3-17 may be made in bonds on which the licensee is surety after such
3-18 notice and upon such conditions as are required by the Code of
3-19 Criminal Procedure[, 1965, as amended,] in bond forfeiture cases.
3-20 The[; the] board shall file the deeds of trust in the records of
3-21 each county in which the property is located, and the applicant
3-22 shall pay the filing fees.
3-23 (4) [(3)] If the licensee is a corporation, it shall
3-24 furnish to the sheriff an irrevocable letter of credit as a cash
3-25 equivalent to satisfy any final judgment of forfeiture that may be
3-26 made on any bonds on which the corporate licensee is surety.
3-27 SECTION 3. Section 7, Chapter 550, Acts of the 63rd
4-1 Legislature, Regular Session, 1973 (Article 2372p-3, Vernon's Texas
4-2 Civil Statutes), is amended by adding Subsection (f) to read as
4-3 follows:
4-4 (f) Notwithstanding Section 1, Chapter 87, Acts of the 56th
4-5 Legislature, Regular Session, 1959 (Article 7.19-1, Vernon's Texas
4-6 Insurance Code), in a county bordering the United Mexican States
4-7 that has a population of not more than 250,000 and not less than
4-8 125,000, the aggregate amount of bonds in force that are made by a
4-9 corporation authorized by law to act as a surety company may not
4-10 exceed 10 percent of that corporation's required capital and
4-11 surplus, as certified by the Texas Department of Insurance
4-12 according to that corporation's last annual statement required by
4-13 the Insurance Code. The board shall designate a county officer or
4-14 employee who shall:
4-15 (1) annually request from the Texas Department of
4-16 Insurance a report stating each affected corporation's total
4-17 capital and surplus, as certified by that department;
4-18 (2) monitor each corporation's potential liability on
4-19 bonds in force; and
4-20 (3) notify a corporation that additional bail bonds
4-21 may not be written by or accepted from that corporation if the
4-22 corporation's total liability reaches the 10 percent limit imposed
4-23 by this section.
4-24 SECTION 4. (a) This Act takes effect September 1, 1997.
4-25 (b) This Act applies only to an application for a bail bond
4-26 license tentatively approved on or after that date. An application
4-27 for a bail bond license tentatively approved before the effective
5-1 date of this Act is governed by the law as it existed on the date
5-2 the application was tentatively approved, and that law is continued
5-3 in effect for that purpose.
5-4 (c) This Act applies only to a bond written by or accepted
5-5 from a surety corporation on or after the effective date of this
5-6 Act. A bond written by or accepted from a surety corporation
5-7 before that date is governed by the law as it existed on the date
5-8 the bonds were written or accepted, and that law is continued in
5-9 effect for that purpose.
5-10 SECTION 5. The importance of this legislation and the
5-11 crowded condition of the calendars in both houses create an
5-12 emergency and an imperative public necessity that the
5-13 constitutional rule requiring bills to be read on three several
5-14 days in each house be suspended, and this rule is hereby suspended.